6.Inventories

Inventories consisted of the following (in millions):

	June 30,		December 31,
	2017		2016
Raw materials	$	152.6	$	132.8
Work-in-process	201.0		181.0
Finished goods	105.9		91.8
Demonstration units	45.6		34.8

Inventories	$	505.1	$	440.4

Finished goods include in-transit systems that have been shipped to the Company’s customers, but not yet installed and accepted by the customer. As of June 30, 2017 and December 31, 2016, the value of inventory-in-transit was $38.9 million and $37.5 million, respectively.

In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. This guidance eliminates the measurement of inventory at market value, and inventory will now be measured at the lower of cost and net realizable value. The ASU defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. No other changes were made to the current guidance on inventory measurement. The Company adopted ASU No. 2015-11 on a prospective basis in the first quarter of 2017. The adoption did not have a material impact on the Company’s unaudited condensed consolidated financial statements.